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Andy Lam
  • Northville, MI
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Rental property placed into service a second time

Andy Lam
  • Northville, MI
Posted

I have a rental property (a condo) that was placed into service 2004. I started taking the 27.5yr depreciation that year, but stopped in 2010 when it became my primary residence. However, in 2015, I placed it into service again.

For talking purposes, let's assume I started with $200,000 in 2004, and ended with an adjusted basis of $165,000 in 2010. Starting 2015, do I depreciate the $165,000 for the remaining 21.5yrs of the original recovery period, or do I start new at 27.5 yrs again?

Also, can I add improvements I made to the condo during 2010-2015, when it was my primary residence, to the $165,000 adjusted basis?

I couldn't find information on this topic where a rental property is placed into service a second time. Thanks!

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